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The shadow economy of Ukraine up to 45% – IMF

The IMF has called the size of the informal sector in the structure of Ukraine’s economy

Since 1991, when the shadow economy of Ukraine was estimated at 38,96% of GDP, the figure is continuously growing until 1998, reaching a peak of 57%. In 2015 the Ukrainian shadow economy was estimated at 42.9 percent.

The IMF has estimated the size of the informal sector in the structure of Ukraine’s economy at 44.8%. This is stated in the report of the economist, Leandro Medina from the African Department of the IMF and Friedrich Schneider from the University of Kepler (Linz), writes ekonomichna Pravda on Friday, February 9.

According to the report, the average size of the shadow economy in Ukraine is estimated at 44.8% of GDP.

The study covers the period from 1991 to 2015, and shows how the index has varied from year to year.

Since 1991, when the shadow economy of Ukraine was estimated at 38,96% of GDP, the figure is continuously growing until 1998, reaching a peak of 57%.

The downward trend was observed until 2008, the figure dropped to 36,65%.

The financial crisis was the cause of “rebound”, and for the years 2009-2014 the level of shadow economy has fluctuated between “39,2% to 43,5%”.

In 2015, the Ukrainian shadow economy was estimated at 42.9 percent.

For comparison, in developed countries the figure ranges from 7% to 15% of GDP (USA, Netherlands, Japan, Switzerland, Singapore).

We will remind, earlier it was reported that the level of the shadow economy of Ukraine in the first quarter of 2017 dropped to 37%.

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